Consider the parallel demand curves in the figure below. Which curve is relatively more elastic at P1?
A. AA
B. BB
C. Cannot be determined
D. Both have the same slope; therefore both have the same elasticity
B. BB
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A-1 bank initially has no excess reserves. If the desired reserve ratio is 10 percent and a new deposit of $10,000 is made in A-1, then A-1
A) can immediately loan $9,000. B) is required to hold the deposit in its reserves. C) can immediately loan $100,000. D) can immediately loan a multiple of the $10,000. E) can immediately loan $10,000.
Refer to Table 14-8. If the firms cooperate, what prices will they select?
A) Brawny Juice will select a low price; Power Fuel a high price. B) Both firms will select a high price. C) Brawny Juice will select a high price; Power Fuel a low price. D) Both firms will select a low price.
The main role of financial intermediaries is to
A) provide funds to the federal government to cover the budget deficit. B) borrow funds from savers and lend them to borrowers. C) provide advice to consumers on how they should handle their finances. D) help ensure that there is enough money in circulation.
A college student decides to spend the afternoon watching three movies rented from Red Box. The cost of each movie is $1. The student was willing to pay $4 to rent each of the first two movies and $2 to rent the third movie. What was the marginal benefit received by the student when renting the 1st movie?
A. $4 B. $8 C. $1 D. $2